Last fall, I was elected by my fellow Alaskans with a mission: balance Alaska’s woefully mismanaged budget and reopen Alaska for business. I’m proud to say that my administration is well on its way to making good on these promises. During my first year in office, I signed a budget that will cut Alaska’s $1.6 billion deficit by 40%. I also worked with our state government to identify 100 job-killing regulations in need of reform.
Since completion of the Trans-Alaska Pipeline in 1977, Alaska’s economy has been intertwined with oil. When the price of North Slope crude plummeted from over $110 per barrel in 2014 to less than $30 just two years later, state revenues fell from over $4 billion in 2013 to just $750 million in 2018. Alaska’s credit rating collapsed and the Last Frontier became better known as the “worst state for business.”
I ran for governor because I, like most Alaskans, believed the decline of the state that I love must be reversed. To this end, I began my tenure by publishing a transparent and honest assessment of Alaska’s finances. When our state’s big-spending politicians were unable to find the necessary savings, I utilized my veto powers to cut spending by $650 million — the largest budget reduction in state history and a critical first step toward balancing the state budget.
Critics of these cuts have resorted to disinformation to promote their spending agendas. Take funding for public safety in rural Alaska. Thanks to federal grants, rural security programs will see an $11 million funding increase over the next year. What critics claim is a cut to the Village Public Safety Officer program is simply an administrative edit that aligns the budget with their actual prior-year spending.
Apparently Washington, D.C., is not the only place where big government spenders manipulate the budget numbers to their advantage.
My administration also worked hard to listen to the concerns of Alaskans during the budget process, resulting in $150 million worth of compromises. This amount included the preservation of $110 million in funding for the University of Alaska, $21 million for senior benefits, and $9 million for early learning programs. I am committed to continuing these difficult conversations with Alaskans as we determine what it will take to fully solve Alaska’s fiscal puzzle.
Equally important to reducing government spending is reopening Alaska for business. My administration has identified 100 job-killing regulations that must be revised in order to increase freedom and growth for Alaska businesses. Hundreds of millions of dollars in infrastructure investment at Ted Stevens Anchorage International Airport also ensures our state is ready for future growth.
This “open for business” approach is already paying dividends. In 2019, unemployment fell to its lowest point in decades with the addition of 1,600 new jobs, and Alaska posted some of the best personal income growth numbers in the country. Meanwhile, our domestic oil industry is poised to make a comeback, with billions in North Slope investment in the works.
Finally, I will continue to do everything in my power to restore the full Permanent Fund dividend to all Alaskans. For those unfamiliar, the Permanent Fund collects a portion of Alaska’s oil revenue each year. Since 1982, a portion of this fund is returned to Alaskans annually, representing their share of the profits generated by the fund.
Sadly, the legislature has once again chosen to reach into Alaskan’s pockets by diverting nearly half of the dividend to government spending. Faced with the decision of vetoing the $1,600 dividend and potentially leaving Alaskans with no dividend at all, I chose to sign the bill. However, I remain committed to restoring the full $3,000 dividend and will call a third special session of the legislature to do so.
When I took the oath of office last December, I knew the task ahead would be the challenge of a lifetime. Cutting government spending while holding the line on taxes is no small feat given the growing power of special interests in Alaska. But I am already heartened by the progress we have made and remain fully committed to fighting on Alaskan’s behalf for a brighter future.
Mike Dunleavy, a Republican, is the 12th governor of Alaska.
